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Stocks wobble after key data as Micron slips

US stocks faltered on Thursday after chipmaker Micron’s (MU) outlook dented hopes for a tech rebound, as investors weighed new economic data ahead of a key inflation figure for Federal Reserve policy.

The S&P 500 (^GSPC) was little changed after rising Wednesday to close near a new all-time high. The Dow Jones Industrial Average (^DJI) hovered around the flat line, while the tech-heavy Nasdaq Composite (^IXIC) rose 0.1%.

Stocks are struggling following Micron’s current quarter sales guidance, which met expectations but failed to satisfy investors looking for exceptional outperformance from AI-related companies .

Optimism around AI has helped lift the benchmark S&P 500 to a 15% gain this year. But concerns are growing that the recovery could be at risk if the handful of technology companies behind most of these gains stop beating already high expectations.

Shares of memory maker Micron fell more than 4% in early trading. Nvidia (NVDA) was down about 1%, reviving concerns of a return to the sell-off that shook markets last week.

Investors were studying a fresh batch of economic data ahead of Friday’s PCE inflation release, which will influence the Fed’s thinking on the timing of interest rate cuts.

The figure for first weekly unemployment registrations stands at 233,000, a drop of 6,000 compared to the previous week, according to data from the Ministry of Labor. The result is below consensus expectations of 235,000. But recurring jobless claims reached their highest level since the end of 2021, suggesting that it is taking longer for the unemployed to find work.

Real gross domestic product (GDP) grew at an annual rate of 1.4% in the first quarter of 2024, according to the Economic Development Bureau’s third estimate released Thursday morning. The figure was slightly higher than the previous estimate of 1.3%.

Inflation could also play a big role in the first debate between President Joe Biden and former President Donald Trump on Thursday night.

On the corporate front, shares of Levi Strauss (LEVI) fell more than 15% after the jeans retailer missed earnings in the second quarter. Investors will look to Nike (NKE)’s quarterly results after the bell for more clues about consumer resilience.

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  • Stocks wobble after key data as Micron slips

    Netflix and Meta help Nasdaq enter green territory

    Communications stocks propelled the Nasdaq Composite (^IXIC) into positive territory, up 0.3% shortly after the market opened Thursday.

    Netflix (NFLX) and Meta (META) both rose more than 1%, helping lift the tech-heavy sector that had previously dipped just below the flatline.

    The S&P 500 (^GSPC) also rose 0.2%, while the Dow Jones Industrial Average (^DJI) was little changed.

    Meanwhile, chip giant Nvidia (NVDA) was down slightly after sales forecasts from Micron (MU) failed to excite investors about the AI ​​craze that has fueled the rally. wide of the market this year.

  • Stocks wobble after key data as Micron slips

    Stocks wobble at open as investors weigh economic data, Micron puts brakes on tech rally

    Stocks opened slightly lower on Thursday morning after the GDP figure for the first quarter of 2024 was slightly higher than the previous figure for the same three-month period.

    The S&P 500 (^GSPC) was little changed while the Dow Jones Industrial Average (^DJI) slipped 0.1%. The tech-heavy Nasdaq Composite (^IXIC) fell just below the flat line.

    Real gross domestic product (GDP) grew at an annual rate of 1.4% in the first quarter of 2024, according to the Economic Development Bureau’s third estimate released Thursday morning. The figure was slightly higher than the previous estimate of 1.3%.

    The figure for first weekly unemployment registrations stands at 233,000, a drop of 6,000 compared to the previous week, according to data from the Ministry of Labor.

    On the corporate side, Chipmaker Micron’s (MU) sales guidance for the current quarter met expectations but failed to satisfy investors looking for exceptional outperformance from technology-related companies. ‘AI. The stock fell about 4% in early trading. AI chip giant Nvidia (NVDA) also fell nearly 1% at the open.

  • Why Levi’s Quarters Bother Me

    Shares of Levi’s (LEVI) are slammed 15% in pre-market trading after earnings.

    And I think it’s deserved for two reasons.

    First, sales in China fell 10% from the previous year. I have spoken recently with quite a few people who have recently visited China. One commonality is that Chinese consumers are feeling quite depressed and are not spending like in previous years. This sentiment is impacting demand for Levi’s jeans, Starbucks (SBUX) coffee, and — according to General Mills’ (GIS) earnings conference call yesterday — Haagen Dazs ice cream.

    It is difficult to see the inflection point in China.

    The same goes for the Levi’s wholesale business or one that sells to department stores. Sales fell 4% from the previous year. The company’s commentary suggests that wholesale demand may not turn around until 2025.

    I plan to raise some of my concerns with Levi’s CFO Harmit Singh today at 10:30 a.m. ET on Yahoo Finance. To agree!

News Source : finance.yahoo.com
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